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Spanish rule protecting gig-economy riders leads to labour shortage, Uber says -Breaking

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© Reuters. FILE PHOTO – A screen shows the logo of Uber Technologies Inc. at New York Stock Exchange (NYSE), New York, U.S.A, May 10, 2019. REUTERS/Brendan McDermid

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By Christina Thykjaer

MADRID, Reuters – Last year’s Spanish law that required food delivery companies in Spain to hire their couriers has created a shortage of workers. Many prefer being self-employed to work for competitors who ignore the regulations. Uber (NYSE.) Eats stated Tuesday.

Uber’s Spanish-based online delivery service published Tuesday a letter to the Labour Ministry in which it complained that contracts offered by Uber to freelance riders were not enough to ensure its services.

Uber Eats claimed that their fleets are unable to find sufficient couriers, as these people prefer to work independently. This is against the Rider Law, which Uber Eats refers to, in May 2021, when firms were required to issue formal work contracts for gig-economy workers.

Glovo spokesperson said that the company was not in violation of any laws and had taken all necessary steps to comply.

Uber Eats letters fuel a European scandal over the legal status and thousands of bicycle riders who cycle through city centers in oversized, branded backpacks. They generally do not have benefits like minimum wages, holidays, or pension rights.

In December, the European Commission recommended that other EU members follow Spain’s example. This move was long overdue according to unions but could lead to job loss for some firms.

Labour Ministry stated that it required all platforms to adhere to the new law. “The vast majority of digital platforms adhere to this rule,” said the ministry, without giving any details about firms that didn’t.

Spanish trade unions supported the Spanish decree. However, many riders associations and labour specialists were skeptical of this new law, saying it didn’t resolve the legal problem for couriers.

Uber Eats claimed that the couriers would rather have the ability to concentrate on their lucrative rush hour hours while being self-employed, instead of the more lucrative social protection contracts. However, these work contracts also required them to work during less lucrative times.

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